An Auditor Who Is Reporting on Financial Statements That Contain

question 6

Multiple Choice

An auditor who is reporting on financial statements that contain a material departure from generally accepted accounting principles should include a separate explanatory paragraph and ________.

• A)express a qualified or adverse opinion
• B)not modify the opinion paragraph as long as the departure is adequately disclosed in a footnote
• C)deny an opinion on the financial statements
• D)express a qualified opinion or deny an opinion

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Definitions:

Time Consuming

Activities or tasks that require a considerable or excessive amount of time to complete.

Situation Analysis

An evaluation process that identifies an organization's internal strengths and weaknesses, along with external opportunities and threats.

Strategic Plan

A systematic process for envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Current Situation

A phrase referring to the present state or conditions of an event, issue, or circumstance.